Revenue Recognition under IFRS

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Revenue Recognition under IFRS Powered By Docstoc
					                 Under IFRS
Primarily IAS 18 and IAS 11
Very similar to
language in FASB’s
conceptual framework
   This may result in “zero profit” or a loss if not all costs are
    recoverable
   Fixed price contract
   Cost plus contract
   (i) to the extent that it is probable that they will result in
    revenue; and
   (ii) they are capable of being reliably measured.
   Computation same for both: costs incurred plus
    recognized profits less the sum of recognized losses
    and progress billings
   Hence the name: zero profit method
Joint Project of FASB & IASB on Revenue Recognition
                   Discussion Paper Issued Dec. 2008:
         Preliminary Views on Revenue Recognition in
                             Contracts with Customers

				
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posted:9/14/2012
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